Another big hurdle cleared in quest for Artspace development

By Michael Barrett

Published: Wednesday, May 22, 2013 at 05:27 PM.

How does it work?

When a city documents a market that could support an Artspace development, the nonprofit raises 80 to 85 percent of the money needed to make it happen. The community must raise the remaining 15 to 20 percent.

Much of the local portion typically comes from private donations. But a larger chunk must come from state and federal tax credits and other housing and urban revitalization programs, such as Community Development Block Grants.

That will require the city’s cooperation, since it must apply for those competitive funds and then pass them on to Artspace. Gastonia City Council members pledged their support Tuesday night.

“You have to show that the city is on board to get the state to support these projects,” said Artspace Senior Vice President Wendy Holmes.

What’s happened so far?

At the request of local leaders, Artspace first paid a visit to Gastonia in 2010, scouting potential buildings for one of its developments.

Gastonia leaders say they’re closer to creating a vibrant arts community here that would also become an economic and creative boon to the city.

The Community Foundation, Gaston County’s leading philanthropic organization, signed a pre-development contract Wednesday with Artspace, a nonprofit that creates affordable property where artists of all types can live and work. The partnership involves a commitment to date of almost $1 million in private, local donations that will go toward the effort over the next four years.

It’s the culmination of a two-year effort to convince Artspace that Gastonia would be an ideal location for such a development.

Here’s a rundown of questions and answers about the project as it stands:

What is Artspace and what does it do?

Artists — from painters and sculptors to dancers — like to live and work in buildings with lots of natural light and open space. But those fitting the “starving artist” mold often can’t afford or even find locations fitting that description.

Artspace, based in Minneapolis, Minn., strives to help them as the leading real estate developer for the arts. To date, it has completed 32 affordable live-work developments in cities around the country, and has four under construction.

How does it work?

When a city documents a market that could support an Artspace development, the nonprofit raises 80 to 85 percent of the money needed to make it happen. The community must raise the remaining 15 to 20 percent.

Much of the local portion typically comes from private donations. But a larger chunk must come from state and federal tax credits and other housing and urban revitalization programs, such as Community Development Block Grants.

That will require the city’s cooperation, since it must apply for those competitive funds and then pass them on to Artspace. Gastonia City Council members pledged their support Tuesday night.

“You have to show that the city is on board to get the state to support these projects,” said Artspace Senior Vice President Wendy Holmes.

What’s happened so far?

At the request of local leaders, Artspace first paid a visit to Gastonia in 2010, scouting potential buildings for one of its developments.

In October 2011, 568 area artists completed a community survey about whether they would benefit from an Artspace project. Based on those results, Artspace determined Gastonia could support a development with housing for 30 to 40 artists, additional day studios, and ground-floor commercial space.

It would be the first Artspace project in North Carolina and the third in the South, coming on the heels of ventures in New Orleans and Memphis.

Where would it go?

That’s still uncertain. But a site for the development will be pinned down within three to six months, Holmes said Wednesday.

The goal is to do it in downtown Gastonia. Two years ago, Holmes and other Artspace officials toured a number of empty, historic buildings downtown to gauge their potential. Several are still being considered, though it’s often tough to find a building with the layout and natural light an Artspace project requires.

About 50,000 to 70,000 square feet are needed. Creating that could involve using a combination of historic preservation and new construction. Or it may have to involve building everything from the ground up.

“We have to look at all the options on the table,” Holmes said.

How much is it going to cost?

It will cost $12 million to $15 million to build the development here, Holmes said. Artspace will tap into its vast fundraising network to cover its share of the expense.

The Community Foundation’s support has become critical to producing the local share. It has committed $400,000 over the next four years to the venture, said Community Foundation President Richard Rankin.

Over that same period, additional pledges have been made of $250,000 from the David Belk Cannon Foundation and $250,000 from Pamela Kimbrell Warlick. The Glenn Foundation has offered $25,000 this year and may give more later.

There’s more work to be done, Rankin said.

“We have to raise at least another $1 million to $1.5 million through private philanthropy,” he said.

If all goes well, the project could be completed as soon as 2016 or 2017, Rankin said.

“We’re behind this,” he said. “This is a major project and a big deal for the Community Foundation.”

You can reach Michael Barrett at 704-869-1826 or twitter.com/GazetteMike.